• Embassy of Ethiopia

Companies Showing Interest to Ethiopia’s Meat Industry

Ethiopia’s meat industry has been attracting new investors from various countries, according to the Ethiopian Meat and Dairy Industry Development Institute.

The sector has been steadily growing and domestic and foreign investors are showing interest, Director-General of the institute Hailesillasie Wores told ENA.

Currently, companies from China, India, France and Pakistan are engaged in the sector mainly meat processing.

Some 12 modern abattoirs including Luna, Organic, Aksheker and Mojo Modern Export are among the companies operating in Ethiopia with various execution capacities.

Companies from China, Morocco, South Africa and India have shown interest to in the industry.

Frigorifico Allana, part of the Allana group which is the largest agri business group in India, is among the new comers. It is a leading manufacturer and exporter of processed food products ranging from processed meat, processed fruit pulp, spices and pulses among others.

Despite huge potential in the sector, the country benefits little from export of meat and dairy products. Last year, over 104 million USD in revenues have obtained which shows slight progress compared to the previous year.

The performance of the sector during the first two year of the GTP-II – the second five-year development plan- the country has obtained 207.4 million USD from the planned 266 million USD.

To properly utilize its livestock resource, the country is working to expand its market destinations as Dubai and Saudi Arabia are the main destinations for Ethiopia’s meat export.

“Earlier in the year, there was shortage of market linkage, but now Qatar, Kuwait, Bangladesh and Vietnam are among the new market destination we have entered this year”.

This year, the institute has planned to work hard in bringing development to the sector by attracting more companies and enhancing human resource development.

According to Hailesillasie, the institute will work to attract 20 companies to the country to improve the benefits of the country from the sector. The country plans to obtain 180 million USD from export of meat.

Enhancing the development of human power in the area in collaboration with universities and technical and vocational colleges is the other area that the institute will engage this year to fill the gap in manpower.

Efforts are being underway to start undergraduate and postgraduate programs in the sector, in two institutes, Hailesilassie said. Meat, milk, fish and honey processing and processing technologies are the areas to be covered by the courses.

Shortage of livestock supply and market destination are among the major challenges of the sector, Hailesilassie said, adding efforts are being exerted to ease the problem.

Mojo Modern Export Abattoir Technical Manager Dr. Saleamlak Abnew agrees that shortage of livestock supply is hindering companies from becoming fully operational.

Despite the huge livestock resource in the country – estimated to be the leader in the continent- there is a shortage of supply.

This situation is creating unfair competition which led to inflated prices, he told ENA in a telephone conversation.

Referring to the company’s last year performance, the manager said that the shortage is hindering its company from achieving its goal.

Despite the plan to earn more than 26 million USD, Mojo Modern Export Abattoir earned 21 million USD – low not only compared to the plan but also the previous year’s performance.

He emphasized the need to diversify areas that supply live animals to companies engaged in the sector, since all abattoirs are currently getting from few suppliers.

The Manager pointed out that more needs to be done by the companies themselves by opening their own ranches to permanently solve supply and quality problems.

By solving challenges facing the sector, Ethiopia aspires to obtain 1.4 billion USD from export of over 92,000 tons of meat by the end of GTP-II.